The cost of establishing a company in Dubai. Establishing a company in Dubai is considered a vital and important investment step. One of the key factors to consider when starting this process is the cost of setting up a company in Dubai. The costs of establishing a company in Dubai are affected by several factors, including the type of business activity, the regulatory authority, the location, and the expected size of the company.

The cost of establishing a company in Dubai varies depending on the type of commercial license required. There are costs for a regular commercial license and there are costs for an industrial or professional license. In addition, investors should take into consideration the cost of setting up a company in Dubai itself, such as registration fees, licensing fees, and legal consultation fees if necessary.

New businesses in Dubai also need to consider fixed costs such as rent, salaries, health insurance and taxes. It is essential to plan these costs well from the beginning to ensure the company\’s long-term success.

The cost of establishing a company in Dubai

The cost of establishing a company in Dubai

If you are planning to set up a company in Dubai , it is important that you are aware of the cost associated with the process. Given Dubai\’s dynamic economic structure and continuous development, opening a company in this global city is an exciting and promising opportunity.

The cost of setting up a company in Dubai varies based on several factors, including the type of company, business activity, and legal and regulatory requirements. Costs can also vary between local businesses and those dealing with global markets.

Here is an overview of the expected cost of setting up a company in Dubai:

1. Company Type:
   There are multiple options available for the type of company you can establish in Dubai, such as limited liability company (LLC), sole proprietorship, or free zone company. It is important to note that each type of company comes with different requirements and costs.
2. Required Capital:
   The capital required to establish a company in Dubai is an important factor that affects the overall cost. Capital is determined based on the business activity and legal and regulatory requirements. You should plan to save the required amount and transfer it to the company account.
3. Licensing and registration costs:
   The cost of establishing a company in Dubai includes licensing and registration fees. You must pay these fees to the relevant authorities, which may vary based on the type of company, business activity and geographic location you choose.
4. Legal and accounting consulting:
   You may need to use legal and accounting consulting services to facilitate the company incorporation process and ensure compliance with local laws and taxes. This is an important part of the process and can involve additional costs.
5. Business and office costs:
   You may also need to bear business costs and rent an office for your company in Dubai. These costs vary based on company size, office location, and desired facilities. Business costs can include employees\’ salaries, social insurance, and bonuses, while office costs include rent and utilities such as electricity, internet, and air conditioning.

You should remember that these costs are estimated proposals and may actually vary based on many factors and the individual requirements of your business. Therefore, it is recommended to consult with ITQAN to get an accurate estimate of the actual cost of setting up your company in Dubai.

Ultimately, establishing a company in Dubai is a great opportunity to take advantage of the thriving economic environment and unique geographical location of this global city. For many investors seeking success and growth in the global business market, the costs associated with starting a company are a worthy investment.

Steps necessary to establish a company in Dubai

Establishing a company in Dubai requires following several steps, which are as follows:

1. Choosing the type of company: You must determine the type of company you want to establish, whether it is a sole proprietorship, a limited liability company, a one-person company, or a public company, based on the business activity you intend to practice.
2. Determine the license: You must obtain the necessary licenses from the local authorities in Dubai, depending on the type of business activity you plan to practice.
3. Choosing a trade name: A name must be chosen that is unique and not similar to any existing company, and the name must be in line with the commercial franchising laws in Dubai.
4. Partnership arrangement: If you intend to establish a company with a partner or partners, you must arrange the legal agreements and documents related to the partnership.
5. Determine the location and headquarters: You must determine the location of the company’s headquarters, either in free zones or in approved residential or commercial areas.
6. Hire employees if necessary: ​​If you need employees to help you run your company, they must be hired and registered in accordance with Dubai labor laws.
7. Submitting the necessary documents: Submitting the documents required to obtain the necessary licenses to establish the company. These documents may include a passport, personal photos, and other legal documents depending on the type and legal nature of the company.
8. Payment of fees and costs: The required fees must be paid to obtain the necessary licenses and permits to establish the company.
9. Registration and Licenses: After meeting all conditions, submitting the necessary documents, and paying the fees, the necessary licenses and permits will be issued to start the company’s business in Dubai.
10. Compliance with Laws and Regulations: The company must comply with all local laws and regulations in Dubai and adhere to all tax, financial and other legal obligations.

Documents to establish a company in Dubai

To establish a company in Dubai , you usually need to submit a set of documents and legal procedures. Here is a list of basic documents you may need, although the exact need may vary depending on the type of company and business:

• Registration application form: contains company details such as name, company type, proposed activities, and headquarter address.
• Copy of the lease: If the company will be renting an office or work space, a copy of the lease must be provided.
• Official signature form: contains the signatures of the founders or partners representing the company.
• Copy of passport for founders: A certified copy of passports must be submitted for all founders or partners.
• Financial report: You may need to submit a financial report showing the financial capital of the proposed company.
• Sample authorization to establish a company: The founders must sign this form to authorize a lawyer or specialized company to carry out the procedures for establishing the company on their behalf.
• Unemployment Certificate: A certificate of non-business is proof that the chosen trade name of the company is not already in use by another company.
• Company incorporation file: It includes the legal papers and documents proving the company’s incorporation.
• Business License: Once you complete the legal procedures and successfully apply, you will receive a business license that confirms the legality of your company and allows you to conduct business activities.

Types of companies that can be established in Dubai

In Dubai, several types of companies can be established under local legislation, some of the common types include:

1. Sole Proprietorship: A company owned and managed by only one person. The owner is personally liable for all debts and liabilities of the company.
2. Limited Liability Company (LLC): The LLC is the most common form of small and medium-sized businesses. Shareholders of this company have limited protection for their personal assets.
3. Shareholding company: allows shareholders to contribute capital, participate in the management of the company, and vote in important decisions.
4. Private Joint Stock Company: This company is considered a public joint stock company, but the number of shareholders is limited to it, and the company’s shares are represented in tradable certificates.
5. Public Joint Stock Company: Allows the public to subscribe to capital by purchasing shares listed on a stock exchange.
6. Branch of a foreign company: A foreign company can establish a branch in Dubai to further expand and operate in the local market.

Taxes applied to companies in Dubai

In Dubai, corporate taxes are generally applied in accordance with local legislation and applicable tax regulations. Here\’s an overview of the taxes applicable to companies in Dubai:

• Income Tax: In Dubai, there is no corporate income tax at the federal level. However, there are some free zones and special economic zones in Dubai that impose corporate tax, and tax rates and exemptions vary from one region to another.
• Value Added Tax (VAT): VAT was introduced in the UAE, including Dubai, from January 2018. Standard VAT rates are 5% on most goods and services.
• Sales Tax: Laws regarding sales tax vary depending on the type of business and industry. There may be local taxes or fees on some businesses.
• Government fees and charges: Some local authorities in Dubai may impose government fees and charges on businesses for obtaining business licenses, updating records and other government services.

Ultimately, the cost of setting up a company in Dubai is varied and depends on several factors such as the type of company, business activity, and location of the company. Generally, the main costs include registration and licensing fees, legal and accounting consulting costs, and capital needed to start the business.

Investors can accurately determine the cost of establishing their company in Dubai by consulting with Itqan Company experts and obtaining specific estimates for each step of the establishment process. With good planning and proper organization, investors can avoid unwanted surprises and ensure a successful start-up of their business in Dubai.

The most important frequently asked questions: Establishing a company in Dubai